Sources told the Wall Street Journal that the e-commerce giant is expanding into the physical sector and plans to open its first stores in Ohio and California.
A person familiar with the matter told the Wall Street Journal (WSJ) on Thursday that Amazon plans to open a large physical retail store in the United States as a department store, selling a variety of goods, including clothing, household goods and electronic products. .
The Wall Street Journal said in an exclusive report that the e-commerce company’s first physical store is expected to open in Ohio and California, with an area of approximately 2,787 square meters (30,000 square feet), and Bloomingdale’s and Nordstrom department stores. The size of the company is similar.
The source said that it is not yet clear which brands the company will offer in its physical stores, but it is expected that its own Amazon brand will occupy a prominent position, which produces products ranging from clothing and furniture to batteries and electronic devices.
In recent years, Amazon has been dominating the field of online shopping, having previously tried to open stores selling books and groceries in several US states such as California, Colorado, and Washington. It acquired the grocery company Whole Foods in 2017.
Last year, Amazon witnessed a surge in commercial and online shopping for U.S. shoppers buying household products and groceries online. With COVID-19 forcing millions of people indoors, business is booming.
According to reports, with plans to expand into the physical field, Amazon will join a field where it will help reshape itself.
In recent years, many department stores, shopping malls and mom-and-pop stores have closed their doors as consumers turn to online to find better deals.
A person familiar with the matter told the Wall Street Journal that Amazon was founded in 1994 as an online website selling books. About two years ago, Amazon approached some American clothing brands and proposed the idea of opening large stores to sell their products.
A person familiar with the matter said that Amazon executives believe that physical stores can help attract new customers and provide a space to display the company’s equipment and products.
The source added that this can also help customers try on clothes and become familiar with the various products sold by Amazon.
In recent years, department stores have been hit hard by discount stores, fast fashion brands and e-commerce.
As the coronavirus pandemic and subsequent lockdowns and restrictions further punish physical retail, the problem further worsens in 2020.
JCPenney, Neiman Marcus Group Inc, Lord & Taylor and Stage Stores Inc have all filed for bankruptcy protection. Some people found new buyers and were able to see another day, while others were liquidated.
But as American shoppers restocked after reducing their clothing purchases last year, chains such as Macy’s and Cole are expected to rebound. On Thursday, both lowered their earnings expectations for the second quarter.